PPC equity capital raise, early November, to reach €1.1-1.2bn

Power utility PPC’s imminent equity capital raise, approved at yesterday’s general shareholders’ meeting and now set for the board’s approval, expected late October or early November, will inject a sum estimated between 1.1 and 1.2 billion euros into the company’s coffers, estimates have indicated.

Over the next ten days or so, PPC will continue promoting the equity capital raise to funds and institutional investors.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan.

To date, the value of requests submitted by investors ahead of the book building process, expected late this month, has reached nearly two billion euros, triple the equity capital raise’s initial sum of 750 million euros.

The PPC board plans to meet either October 29 or November 1 to decide on the level of the equity capital raise, seen exceeding one billion euros, and also to approve it.

The book building process, to immediately follow, is expected within the first ten days of November.

Small-scale company shareholders expressed complaints during yesterday’s session, troubled by the prospect of being completely overshadowed, but PPC’s administration responded by noting they were free to take part in the upcoming equity capital raise.

Major funds, including CVC Capital and Blackrock, are believed to have requested big stakes during lead-up talks with PPC officials, while the overall investor interest is high.

 

PPC shareholders meet today to approve equity capital raise

Power utility PPC is scheduled to stage a landmark general shareholders’ meeting today for approval of its imminent equity capital raise, which, once completed early next month, will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan.

The company board is anticipating complaints at today’s session from small-scale investors, mainly domestic shareholders troubled by the prospect of losing preferential shareholder rights.

Major international funds and institutional investors are preparing to move in and overshadow the smaller private investors. PPC has promised smaller shareholders will not be neglected.

To date, the value of requests submitted by investors ahead of the book building process, expected late this month, has reached nearly two billion euros, triple the equity capital raise’s initial sum of 750 million euros.

In response, PPC appears to have revised its equity capital raise, which could exceed one billion euros.

The strong investor interest is reflected by the company’s share price, which ended trading yesterday at €9.15, fully regaining losses incurred over the past three weeks.

Genop, PPC’s main union group, has announced strike action for today in protest against the equity capital raise, as well as a news conference.

Major foreign fund interest in PPC equity capital raise

Foreign funds are expressing major interest in power utility PPC’s upcoming equity capital raise, whose 750 million-euro plan appears set to be oversubscribed approximately three times, according to banking and brokerage sources.

Though the procedure is not expected to take place until early next month, funds and institutional investors have already submitted requests worth nearly two billion euros, five days before the October 19 general shareholders’ meeting, during which PPC shareholders will be asked to approve the company’s equity capital raise.

The company’s share price, which ended trading yesterday at €8.90, has now fully regained all losses incurred over the past three weeks, reflecting increased overall confidence in the forthcoming equity capital raise.

If the strong investor interest in the lead-up is confirmed through the book building process, expected late in October to determine the price at which the share will be offered, then PPC can expect to raise at least one billion euros through the equity capital raise.

Major foreign fund interest in PPC equity capital increase

Power utility PPC, preparing to stage an equity capital increase later this month, seen reaching one billion euros, is reportedly receiving a mass inflow of enquiries by funds from around the world, including the US, UK, France, western Europe, and Australia, expressing interest to acquire sizeable company stakes in excess of ten percent.

PPC is currently engaged in a continual flow of talks with investors ahead of the company’s general shareholders’ meeting, scheduled for October 19.

The power utility remains committed to its initial goal of maximizing participation for as many quality funds as possible, preferred over the participation of a limited number of funds.

The equity capital increase’s share price is expected to be set between 8 and 8.50 euros per share.

Taking, as an indicator, the interest of funds in the still-unfinished 49 percent privatization of distribution network operator DEDDIE/HEDNO, a PPC subsidiary, interested parties in the power utility’s equity capital increase could include Macquarie, the winning bidder in the DEDDIE/HEDNO privatization, CVC Capital, Blackrock, Ardian, KKR, First Sentier, Oak Hill, and Helikon Investments Limited, already holding a 5 percent stake in PPC.

The interest may also include players who placed offers for PPC’s 7-year bond issue in July. They include EBRD, Fidelity, Apollo, Carmignac, Twenty Four AM, Bluecrest and Pictet, Union Investments, Sona Asset Management, Barings, Aperture, Saba Capital and Vontobel.

In addition, a number of other players expressed early interest during roadshows late last year. These include Bell Rock Capital, Allianz Global Investors, Sephora Investment Advisors, Waterwill Capital Management, Cleargate Capital, and Zenon Investments.

The upcoming equity capital raise is expected to result in a decrease of privatization fund TAIPED’s current stake in PPC from 51 percent to 34 percent.

PPC chooses FMO for equity capital increase, more potential

Power utility PPC’s equity capital increase, announced last Friday, will be staged as a free market offer (FMO) procedure with accelerated book building, meaning that the discount at which the equity capital increase will be held will be determined by the offers to be submitted to the issue’s book.

Also, PPC will be able to announce a bigger equity capital increase should oversubscription be achieved.

The administration’s decision to opt for an FMO procedure rather than a customary method of pre-determined prices is expected to create competition among participants, which could produce a better result, both in terms of the discount and funds to be drawn, officials explained.

PPC will be able to revise, upwards, its 750 million-euro equity capital increase if the procedure is oversubscribed, the officials added.

The power utility’s administration began talks with prospective participants of the equity capital increase last Friday and will continue these talks until the end of October, when the book building procedure will commence.

PPC is aiming to attract 750 million euros. The procedure will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent.

 

 

PPC equity capital increase to reshape market, rivals on alert

Power utility PPC’s plan, announced late last week, to proceed with a 750 million-euro equity capital increase, effectively a partial privatization that will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent, promises to free the utility from restrictions imposed on state-controlled companies, boost its finances and enable the company to further consolidate its position as the dominant market player.

Rival players in the electricity and RES markets are closely following the developments, realizing the energy market map is headed for a major reshape if PPC’s equity capital increase is successfully completed.

PPC, as a transformed, independent corporation without state-company restrictions will be a much harder force to reckon with as it can be expected to charge ahead with an aggressive investment strategy in Greece and the Balkans, market players have commented.

Also, PPC, reshaping for a focus on green energy, will benefit from many advantages in the RES market, including the right to utilize its outgoing lignite areas for renewables, as well as priority grid dispatch rights given the strategic importance of its investments for the country, market officials have noted.

In response, rival players will now need to strengthen their capital standing and also consider strategic partnerships.

 

PPC planning equity capital increase, big funds involved

Power utility PPC will proceed with a 750 million-euro equity capital increase, effectively a partial privatization coming twenty years after a previous round at the bourse that will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent.

The company administration’s step back for a minority share, plus management, aims to maximize the participation of foreign institutional investors, who, along with local investors, are expected to easily cover the equity capital increase’s financial demands.

US, British and northern European funds are among the interested parties, private talks held over the past six months, at least, have indicated, energypress sources informed.

Blackrock, EBRD, Fidelity, Apollo, Carmignac, Twenty Four AM, Bluecrest, Pictet, Union Investments, Sona Asset Management, Barings, Aperture, Saba Capital and Vontobel are funds that could be involved, it is believed.

The equity capital increase paves the way for the influx of capital that will contribute to PPC’s 8.4 billion-euro investment plan until 2026, currently ranked as the most ambitious in the Greek market.

Besides the installation of RES units with a total capacity of 8.1 GW, PPC also aims to branch out into the Balkans, beginning with projects in Romania and Bulgaria.

Romania’s RES market is growing at an annual rate of 8 percent, the country’s objective being to reach an installed capacity of 6 GW by 2030. Bulgaria’s RES market is growing at an even greater rate, 15 percent. The neighboring country’s objective is to have installed a further 3 GW by 2030.